Brazil has failed so far to develop its infrastructure and to attract foreign resources in the amount required, and warranted, by important economic sectors. Lately, however, promising efforts have been set in motion to overcome this historical pattern.

LS Brazil Outlook analyses this month new initiatives in this regard.

A bill of law drafted by the Central Bank and sent to Congress last month intends to ease foreign exchange rules; a new Provisional Measure in force since the beginning of October aims to foster foreign investments in Brazil’s high performing agribusiness sector.

In addition, we shed light on financer protection mechanismsalready provided by Brazilian Law, such as hedge mechanisms and step-in rights for infrastructure projects, which are potentially relevant – but rarely resorted to.

On this issue | November 2019

Financer protection mechanisms under public concession agreements

Protecting financers in infrastructure projects

The inclusion in concession agreements of mechanisms to warrant protection to infrastructure financers can be an important incentive to foreign investment. Such mechanisms, as step-in rights and the fiduciary transfer of receivables, are contemplated...

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A new FX framework to foster foreign investments

New law to deregulate FX market

A bill of law drafted by the Central Bank (BC) to facilitate access of foreign investors to the Brazilian market was sent to Congress in October. It would end restrictions to buy and sell any amount of foreign currency; foreign capital to be...

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Risk Hedge in Infrastructure Investments

New risk hedge for infrastructure projects

Initiatives to offer hedge protection based on the flow of resources connected to projects are becoming reality in Brazil. These shall be the best option for key areas in infrastructure since uncertainty around the currency is the main difficulty...

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New framework creates investment opportunities in Brazil’s Agribusiness

Financial rules to benefit investment in agribusiness

Recent changes in legislation allow the offer of hedged Agribusiness Receivables Certificates to non-Brazilian investors. A new regime of “segregated property” will enhance credit guarantees and the issuance of widely used Bank Credit Notes...

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